State's unemployment rate declines to 8.7 percent

ATLANTA -- Georgia's seasonally adjusted unemployment rate decreased to 8.7 percent in August, down one-tenth of a percentage point from 8.8 percent in July. The decline follows three consecutive months of rate increases.

State Labor Commissioner Mark Butler said a significant reduction in layoffs was the primary reason the rate dropped. Layoffs were the fewest since September 2007, Butler said.

There was only a small increase in the number of jobs.

Much of the decline in layoffs came in manufacturing, as workers who were temporarily laid off in July returned to work in August. Fewer claims also came in construction, trade, and administrative and support services.

Also, the number of initial claims was down by 10,222, or 22.4 percent, from 45,725 in August 2012. Reductions were mostly in manufacturing, construction, trade, and administrative and support services.

There were 4,045,100 jobs in August, up by 3,000 from 4,042,100 in July. Government added 10,700 jobs, as education workers returned to the public schools after the summer vacation. However, the gain was offset somewhat by the loss of 7,700 private sector jobs, mostly in professional and business services.